Nithin Kamath suggests how to curb offshore betting apps mushrooming after real money gaming ban

Why in news

Nithin Kamath proposed restricting domestic payment systems for offshore real-money gaming apps to prevent scams following the passage of the Promotion and Regulation of Online Gaming Act, 2025.

Background

The Promotion and Regulation of Online Gaming Act, 2025, banned all forms of online gaming involving real-money participation in India. The law removed the distinction between games of skill and games of chance, leading to the shutdown of paid operations by major platforms.

Facts for Prelims

• Act / BillPromotion and Regulation of Online Gaming Act, 2025: Banned all forms of online gaming involving real-money participation.
• FactThe 2025 Act eliminated the legal distinction between games of skill and games of chance.
• FactOffshore apps are noted for operating outside Indian jurisdiction and potentially bypassing anti-money laundering rules.

For Mains

Q. Discuss the challenges in regulating offshore real-money gaming platforms and the implications of removing the distinction between games of skill and chance.

Dimensions to cover in your answer

• Jurisdictional hurdle: Difficulty in enforcing Indian consumer protection and anti-money laundering laws on offshore entities
• Financial integrity: Risk of illicit money flows and scams through unregulated payment gateways
• Regulatory parity: Balancing the prohibition of real-money gaming with the preservation of the skill-based gaming industry

Keywords: Regulatory arbitrage · Jurisdictional challenge · Consumer protection · Anti-money laundering · Skill vs Chance

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